Government to stop sending benefits by check
An important deadline is just days away. Starting in March, federal benefits - such as Social Security and Veterans Benefits - will no longer be sent by check.
You need to choose between electronic deposit into a bank account or having that money loaded onto a MasterCard debit card.
If you don't make a choice by March 1, you'll automatically be enrolled in the Direct Express debit card program.
Bruce McClary with Clearpoint Credit Counseling Solutions says the debit card is probably not the best option.
"First of all, your money can grow if it's in a checking or savings account. Deposits in a standard checking or savings account are obviously insured and they're secure. And debit cards typically generate more fees than a checking or savings accounts, so you're losing ground."
So what should you do if you get federal benefits by check and haven't told the government what to do starting next month?
Talk to the agency that issues the benefits, visit your bank or credit union, or make the change by phone (800-333-1795) or online at godirect.gov.
For more information
FAQ: A change in the way federal benefits will be paid
You need to choose between electronic deposit into a bank account or having that money loaded onto a MasterCard debit card.
If you don't make a choice by March 1, you'll automatically be enrolled in the Direct Express debit card program.
Bruce McClary with Clearpoint Credit Counseling Solutions says the debit card is probably not the best option.
"First of all, your money can grow if it's in a checking or savings account. Deposits in a standard checking or savings account are obviously insured and they're secure. And debit cards typically generate more fees than a checking or savings accounts, so you're losing ground."
So what should you do if you get federal benefits by check and haven't told the government what to do starting next month?
Talk to the agency that issues the benefits, visit your bank or credit union, or make the change by phone (800-333-1795) or online at godirect.gov.
For more information
FAQ: A change in the way federal benefits will be paid
@BruceMcclary http://t.co/yqSi8kMTHu
it costs 10 cents for direct deposit vs. 1.00 for checks --- tax payers to save 90 cents
Great, now instead of waiting for grandma to pull out her checkbook  when the clerk is done ringing her up and then filling in the check register and slowly writing out the check, she can then look at the card reader with that same look Mother Mylon used to give the TV remote and push some random numbers all the while complaining about this newfangled technology.
@Getov Mylon I wish there was a 'dislike' button
@Lrry*x*K @Getov Mylon You said it, brother!
Here again is another sign of our government sleeping in bed with the banking industry. Now to get your money you have to pay the bank. On top of that the banking industry is adding more and more fees on the use of your debit card as well. This is a huge cash cow for the banking industry while the poor people that some only have that as a source of income get hit with more fees to get their own money. Your best bet us use a Savings and Loan as your bank rather than the big box monsters that are greedy beyond belief.
@LongBeachBumÂ
Perhaps you need to change banks? I have FREE checking, no minimum balance, no transaction fees., my money=/deposits are insuraned. I use a credit union. The only fee they have ever gotten out of me is when I accidently overdrew my account - they paid the item & charged me $25.
@LongBeachBum Credit unions are a much better option than a Savings and Loan association.
@LongBeachBumNobody has to pay a dime to get their money. Most banks offer free accounts if the customer uses direct deposit. Just do a little research.
This is a good way for the government to save money. This is a faster way for people to get access to their payments. And this will be cheaper than using check cashing services.
@LongBeachBum Has it occurred to you that printing checks cost more than electronic deposits? Which is why more and more employers mandate direct deposit rather then handing out checks as in 50 years ago. It's called evolution
@Lrry*x*KÂ @LongBeachBum So you are Ok with the1% bank fee for any bank transaction ,check what ever.Just say you get $2000 a month. say you 10 transactions a month. The bank gets the 1% on all transactions in coming and out going. Now you see Y they backed there man